Bayer, Bicycle Therapeutics ink Partnership to Develop Novel Targeted Radionuclide Therapies In Oncology

Bayer and Bicycle Therapeutics plc, a biotechnology company pioneering a new and distinct class of therapeutics through the use of proprietary bicyclic peptides technology (Bicycle), announced a strategic collaboration agreement to discover, develop, manufacture, and commercialise Bicycle radioconjugates for multiple agreed-upon oncology targets. Bicyclic peptides are synthetically manufactured peptides that bind to targets with high affinity and selectivity, allowing for high tumour penetration and rapid excretion from healthy organs.

They are chemically synthesizable, have a low molecular weight, and have tunable pharmacokinetics, as well as a large surface area for molecular interactions, allowing protein-protein interactions to be targeted. The two companies will collaborate to develop bicyclic peptides for several unnamed oncology targets using Bicycle's peptide technology. Targeted radiotherapies are a novel type of cancer treatment. They have the potential to unlock a broad opportunity space and serve patients in high-unmet medical need indications due to their unique mode of action. "At Bayer, we enter strategic collaborations to expand our access to innovation," said Christian Rommel, Ph.D., global head of R&D and member of Bayer's executive committee, pharmaceuticals division.

"With Bicycle's proprietary peptide-based technology, we continue to strengthen our oncology development pipeline by adding next-generation targeted radiotherapeutics to address the high unmet medical needs of cancer patients." "Bayer is a pioneer in the radiopharmaceuticals space and provides new and additional validation of our unique technology," said Bicycle Therapeutics CEO Kevin Lee, Ph.D. "We believe our bicyclic peptide platform, combined with Bayer's scale and expertise in radiopharmaceutical development, has the potential to improve clinical outcomes for cancer patients."

We are excited to work with Bayer to develop new potential first-in-class radiopharmaceutical treatments based on bicycles." Under the terms of the agreement, Bayer and Bicycle will collaborate on the development of bicyclic peptides for multiple oncology targets. Bicycle will utilize its proprietary phage platform to discover and develop bicyclic peptides and Bayer will be responsible for, and fully fund, all further preclinical and clinical development, manufacturing, and commercialization activities. Bicycle will receive a $45 million upfront payment and with potential development and commercial-based milestone fees, payments to Bicycle could total up to $1.7 billion. Bicycle will also be eligible to receive mid-single to double-digit tiered royalties on Bicycle-based medicines commercialized by Bayer.

The closing of the transaction is subject to clearance of the transaction under the UK National Security and Investment Act 2021. Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bicycle Therapeutics is a clinical-stage biopharmaceutical company developing a novel class of medicines, referred to as Bicycles, for diseases that are underserved by existing therapeutics.